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Unit One An Overview of International Business 1

Ⅰ An Introduction to International Business 1

1．Definitions 1

2．Why Nations Trade? 2

Ⅱ　History of International Trade 3

Ⅲ　Protection or Free Trade? 5

Ⅳ　MNCs and Globalization 6

1．Global Exchange 7

2．Have a Break 7

Ⅴ　Effects of Technology on International Business 8

Vocabulary 10

Notes 18

Related Terms 25

Post-reading Activities 28

Supplementary Reading 31

Unit Two　Theories of International Business 35

Ⅰ　The Age of Mercantilism 35

Ⅱ The Theory of Absolute Advantage 37

Ⅲ The Theory of Comparative Advantage 38

Ⅳ The Factor Proportions Trade Theory 40

Ⅴ The Leontief Paradox 42

Ⅵ The Product Cycle Theory 43

Ⅶ Protectionism 46

Vocabulary 47

Notes 53

Related Terms 57

Post-reading Activities 61

Supplementary Reading 65

Unit Three Economic Integration 73

Ⅰ Levels of Economic Integration 73

1．Preferential Trade Arrangement(PTA) 74

2．The Free Trade Area(FTA) 74

3．The Customs Union 74

4．The Common Market 75

5．The Economic Union 75

6．Monetary Union 75

Ⅱ European Integration 76

Ⅲ North American Economic Integration 78

Ⅳ Integration in Asia 80

1．ASEAN Free Trade Area(AFTA) 80

2．The ASEAN Plus Three(APT) 81

3．Asia-Pacific Economic Cooperation(APEC) 82

Vocabulary 84

Notes 88

Related Terms 99

Post-reading Activities 103

Supplementary Reading 107

Unit Four Multinational Corporations 114

Ⅰ The Multinational Corporate Phenomenon 114

1．Definitions of the Multinational Corporation 114

2．Why Do We Have Multinational Corporations? 115

3．The Most Powerful Institution in the World Today 116

Ⅱ Foreign Direct Investment(FDI) 117

1．Definitions 117

2．Impacts of FDI 118

3．Major Types of FDI 120

Ⅲ Technology Transfer 123

1．Introduction 123

2．Modes of Technology Transfer 124

Ⅳ Market Entry Modes of Multinational Corporations 126

1．International Joint Ventures(IJVs) 126

2．Fully Owned Subsidiaries 127

Vocabulary 130

Notes 137

Related Terms 143

Post-reading Activities 147

Supplementary Reading 150

Unit Five Instruments of Trade Policy 158

Ⅰ Tariffs 159

1．Specific Tariff 159

2．Ad Valorem Tariff 160

3．Compound Tariff 161

Ⅱ Quotas 162

Ⅲ Embargoes 163

Ⅳ Exchange Controls 164

Ⅴ Product Standards 167

Ⅵ Anti-dumping 168

1．Anti-dumping 169

2．Anti-dumping,Safeguards,Countervailing Duties 169

3．WTO—Doha Development Round 170

Ⅶ Subsidies 171

1．Export Subsidies 171

2．WTO Rules on Subsidies 172

Vocabulary 173

Notes 179

Related Terms 184

Post-reading Activities 188

Supplementary Reading 192

Unit Six International Marketing 202

Ⅰ Marketing Research 203

Ⅱ Segmentation 205

Ⅲ Marketing Objectives and Strategy 208

1．Marketing Objectives 208

2．Marketing Strategy 208

Ⅳ Marketing Mix 210

1．Product 210

2．Price 211

3．Place(Distribution) 213

4．Promotion 215

Ⅴ Product Life Cycle 217

1．Introduction Stage 218

2．Growth Stage 218

3．Maturity Stage 219

4．Decline Stage 219

Vocabulary 220

Notes 226

Related Terms 232

Post-reading Activities 236

Supplementary Reading 240

Unit Seven GATT and WTO 243

Ⅰ GATT 243

1．A Bfief History of GATT 243

2．The Goal of GATT 244

3．GATT 1994:Structure 245

4．The Principles of GATT 246

Ⅱ WTO 248

1．A Brief History of WTO 248

2．The Function of WTO 249

3．The Principles of WTO 249

4．China's Accession 252

Vocabulary 256

Notes 260

Related Terms 266

Post-reading Activities 270

Supplementary Reading 275

Unit Eight Market Transition and Development in China 280

Ⅰ Market Transition 280

Ⅱ Development with Its Major Trading Partners 282

1．Trade with the European Union(EU) 283

2．Trade with the USA 285

3．Trade with Southeast Asia 287

Ⅲ The Impact of Globalization on Chinese Economy 289

1．The Impact on the World Economy 289

2．The Impact on the Chinese Economy 290

Vocabulary 292

Notes 294

Related Terms 297

Post-reading Activities 300

Supplementary Reading 304

Appendix Ⅰ Vocabulary 312

Appendix Ⅱ Key to the Exercises 343